A recent study conducted by Startline Motor Finance has revealed that 55% of dealers are optimistic about the used car market in 2024 and expect it to surpass this year’s performance. The survey, which included responses from 60 dealers, also found that 45% predicted higher volumes of used cars and 43% expected an increase in demand for electric vehicles (EVs).
Although they anticipate positive changes in the market, only 25% of dealers foresee an improvement in consumer confidence. According to Paul Burgess, the CEO of Startline Motor Finance, this suggests that the sense of optimism in the used car sector is based more on expected structural changes than on general economic improvement. Dealers believe that there will be better stock availability and a rise in demand for EVs, which would contribute to a better balance of supply and demand.
The study also revealed a steady rise in dealer optimism throughout 2023. In April, only 20% of dealers expressed positivity, but that number has now increased to 73%. Conversely, the number of dealers with negative sentiments decreased from 27% to 10%.
Burgess believes that this data indicates that the used car sector has weathered the economic challenges of 2023 well. As the industry enters the fourth quarter, there is an overall improved mood in the sector. Dealers are hopeful that the market will continue to perform strongly going forward.
Sources: Startline Motor Finance, Fleet News
Definitions:
Structural Changes: Fundamental changes to the underlying framework or organization of a system or market.
Consumer Confidence: The degree of optimism or pessimism that consumers feel towards the overall state of the economy and their personal financial situation.